Principles Of Marketing
17th Edition
ISBN: 9780134492513
Author: Kotler, Philip, Armstrong, Gary (gary M.)
Publisher: Pearson Higher Education,
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Suppose that $100 is invested at the beginning of a year. Which (if either) of the following methods of growing the investment results in a larger amount at the end of the year?
(i) The investment grows at an interest rate of 4% per year, compounded continuously.
(ii) The investment grows at an instantaneous growth rate of 4% per year.
(ii) The investment grows at an instantaneous growth rate of 4% per year.
method (i)
method (ii)
Both methods produce the same amount.
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